ENVESTNET TEAMS WITH BLACKROCK TO SIMPLIFY ACCESS TO CUSTOM MODELS

Rhea-AI Summary

Envestnet and BlackRock (NYSE: BLK) have launched custom model portfolios for registered investment advisors (RIAs), announced at the Elevate conference in Las Vegas. The collaboration combines BlackRock's portfolio design expertise with Envestnet's UMA technology, enabling RIAs to deliver personalized, tax-efficient investment strategies.

The offering will include traditional ETFs and mutual funds, with plans to incorporate SMAs, private markets, and alternative exposures. BlackRock, currently managing approximately $300 billion in model portfolio assets globally, projects managed model portfolios to grow from $5 trillion to $10 trillion in the next four years.

This enhancement builds upon a decade-long partnership between the companies, providing institutional-quality portfolios without added costs. According to Envestnet's 2022 research, firms allocating over 75% of their practice to model portfolios achieve higher valuations.

Positive

• Expected market growth from $5T to $10T in managed model portfolios over 4 years
• Currently manages $300B in model portfolio assets globally
• Partnership enables scalable growth for RIAs without additional costs
• Expansion into new investment vehicles (SMAs, private markets, alternatives)

Negative

• None.

Enables Advisors to Meet Growing Demands for Portfolio Customization at Scale

BERWYN, Pa. and LAS VEGAS, April 9, 2025 /PRNewswire/ -- Today, Envestnet announced at its Elevate conference in Las Vegas that it has gone live with BlackRock (NYSE: BLK) custom model portfolios for registered investment advisors (RIAs).

The new offering provides RIAs with streamlined access to BlackRock's custom model capabilities, managed within a single account and powered by Envestnet's UMA technology.  In addition to traditional public markets ETFs and mutual funds, these portfolios are expected to include Separately Managed Accounts (SMAs), private markets and other alternative exposures in the near future. Combining BlackRock's portfolio design and risk management experience with Envestnet's industry-leading managed account platform will enable RIAs to seamlessly deliver more personalized, tax-efficient investment strategies that can align with clients' specific goals, risk profiles and preferences.

"This year, as we celebrate a decade of partnership with BlackRock at Elevate, we're excited to offer advisors on our platform access to these innovative custom model solutions that reflect our shared commitment to providing scalable solutions that can help drive better client outcomes," said Dana D'Auria, Group President of Envestnet Solutions and Co-Chief Investment Officer at Envestnet. "By offering BlackRock's custom model portfolios on our platform, we're equipping RIAs with the tools they need to deliver high-quality, customized portfolios with greater efficiency and scale – and without added costs."

Delivering Value to Clients and Advisors

This enhanced offering provides advisors and their clients with access to institutional-quality portfolios, enables more strategic and personalized advisor relationships and financial planning. For RIAs in particular, this solution will help them scale their practices more efficiently, reduce operational risk, and spend more time focusing on client relationships. According to Envestnet's 2022 research, firms allocating over 75% of their practice to model portfolios consistently achieve higher valuations.

"Clients are our north star at BlackRock. The expansion of our long-standing collaboration with Envestnet reflects that commitment," said Jaime Magyera, Co-Head of BlackRock's U.S. Wealth Advisory Business. "By combining BlackRock's investment platform and portfolio construction expertise with Envestnet's UMA technology, we are helping advisors meet the unique needs of their clients in a seamless way, while also making it easier for them to scale their businesses."

This custom model offering expands on ongoing collaboration between Envestnet and BlackRock, through which personalized high-net-worth (HNW) solutions are provided at scale to advisors on the Envestnet platform.

BlackRock is a leading provider of model portfolios, with approximately $300 billion in assets globally. The firm expects managed model portfolios to roughly double in assets over the next four years, growing from $5 trillion today into a $10 trillion business. 

To view the complete Envestnet Elevate 2025 schedule, please visit https://www.envestnet.com/event/elevate/glance/.

About Envestnet

Envestnet is helping to lead the growth of wealth managers and transforming the way financial advice is delivered through its ecosystem of connected technology, advanced insights, and comprehensive solutions—backed by industry-leading service and support. Serving the wealth management industry for 25 years with approximately $6.5 trillion in platform assets, Envestnet technology and services are trusted by more than one-third of all financial advisors. Many of the largest U.S. banks, wealth management and brokerage firms, and RIAs depend on Envestnet to help drive business growth and productivity—and deliver better outcomes for their clients.

For a deeper dive into how Envestnet is shaping the future of financial advice, visit www.envestnet.com. Stay connected with us for the latest updates and insights on LinkedIn and X (@Envestnet_).

About BlackRock

BlackRock's purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock

Disclosure: Through a holding company subsidiary, BlackRock, Inc. (¨BlackRock¨) owns a non-controlling interest in Envestnet´s parent company, Envestnet, Inc.  Envestnet has entered into a strategic relationship with BlackRock for certain program offerings. For more information regarding this relationship and the related conflicts, please see Envestnet's Form ADV Part 2A.

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SOURCE Envestnet

FAQ

What is the projected growth for BlackRock's managed model portfolios over the next four years?

BlackRock (BLK) expects managed model portfolios to grow from $5 trillion to $10 trillion, roughly doubling in assets over the next four years.

How much does BlackRock currently manage in model portfolio assets globally?

BlackRock (BLK) currently manages approximately $300 billion in model portfolio assets globally.

What new investment options will be included in BlackRock's custom model portfolios through Envestnet?

The portfolios will expand beyond traditional ETFs and mutual funds to include Separately Managed Accounts (SMAs), private markets, and alternative exposures.

What benefits do RIAs gain from BlackRock's custom model portfolios on Envestnet?

RIAs can scale their practices efficiently, reduce operational risk, deliver personalized tax-efficient strategies, and focus more on client relationships without added costs.